Morgans, Bell Potter trim Evolution Mining value after cost warning
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The news: Analysts at Morgans and Bell Potter have cut their ratings on Evolution Mining after the gold company warned of higher mining costs in the 2026 financial year.
The numbers: Morgans downgraded Evolution from 'hold' to 'trim' and cut its 12-month target price from $7.40 to $7. Bell Potter retained its 'hold' rating but lowered its target price from $8.10 to $7.95.
Evolution shares last closed at $7.52 after falling 2.3% on Wednesday.
The context: Morgans analyst Annabelle Sleeman said Evolution delivered a "solid FY25 result" with production, costs and capital expenditure all in line with guidance and market estimates.
However, she noted that costs are guided to be 14% higher in FY26 due to inflationary pressures and higher non-stockpile usage at Evolution's Cowal and Northparkes sites.
Sleeman also sees the miner's shares as fully valued following a "considerable share price outperformance" compared to the gold price and other gold equities.
Bell Potter also lowered its target price on Evolution and cut its earnings-per-share estimates by 16% in FY25, 13% in FY26 and 14% in FY27. Analyst David Coates said the downgrades were due to the miner's lower production guidance for fiscal 2026.
The sources: Morgans research, Bell Potter research
